Ferroglobe PLC (NASDAQ: GSM) (“Ferroglobe”, the “Company”, or the
“Parent”), a leading producer globally of silicon metal,
silicon-based and manganese-based specialty alloys, today announced
financial results for the second quarter 2023.
FINANCIAL HIGHLIGHTS
- Reported Q2-23 revenue of $456.4
million, up 14% over the prior quarter
- Q2-23 adjusted EBITDA of $105.7
million, up 136% over the prior quarter
- Improved Q2-23 adjusted EBITDA
margin to 23.2% versus 11.2% in Q1-23
- Q2-23 Adjusted EPS was $0.30 versus
$0.05 in Q1-23
- Gross debt was $400.1 million in
Q2-23, flat versus the prior quarter and down $100 million from a
year-ago quarter
- Net debt declined to $37 million,
down from $55 million in Q1-23 and $194 million in Q2-22
- $100 million available from our ABL
facility completely undrawn in Q2-23
- Total cash increased to $363
million, up from $344 million in Q1-23 and $307 million in
Q2-22
BUSINESS
HIGHLIGHTS
- Executed a partial redemption of
the 2025 Senior Notes on July 31, redeeming $150 million of the 9
3/8% Senior Secured Notes due in 2025, reducing annual interest
expense by $14 million
- Approaching net cash neutral -
Lowest net debt in Company history
- Continued improvement to balance
sheet with cash increasing to $363 million and net debt declining
to $37 million
- The US recently added Silicon Metal
as a critical material, highlighting its importance in the supply
chain and reinforcing the onshoring opportunity for
Ferroglobe
- Well-positioned to capitalize on
strong long-term growth trends for high purity silicon metal used
in the production of solar technology and batteries
- Finalized our first long-term power
agreement in Spain, enabling a partial resumption of Spanish
operations while increasing renewable energy sourcing
Dr. Marco Levi, Ferroglobe’s Chief Executive
Officer, commented, “We are pleased to report strong second quarter
sales growth and an EBITDA improvement of 136%, highlighting our
resilience and ability to navigate effectively through this
volatile pricing environment as our end markets remain under
pressure. Equally importantly, our focus on strengthening our
balance sheet has been effective as our cash and net debt positions
reached their best levels in the Company’s history as of June 30.
Subsequent to quarter-end, we continued our deleveraging efforts by
redeeming $150 million of our Senior Secured Notes due in 2025.
“Recently, the US Department of Energy added
Silicon Metal to its critical material list. This is a significant
step, validating the onshoring trend and highlighting our
opportunity in the US market.
“As expected, we finalized our first multi-year
energy contract in Spain starting in 2024. This is an initial step
in the process to sign additional contracts to further hedge our
future energy needs. This contract provides us with access to 100%
renewable energy at competitive rates and enables Ferroglobe to
increase production in Spain.
“While end markets remain soft, our proactive
energy strategy, combined with disciplined costs controls, is
bolstering our performance in 2023. Hence, we are reiterating our
guidance for the full year of adjusted EBITDA of $270 to $300
million,” concluded Dr. Levi.
Second Quarter 2023 Financial Highlights
| |
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
% |
|
% |
|
Six Months Ended |
|
Six Months Ended |
|
% |
| $,000
(unaudited) |
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
|
Q/Q |
|
Y/Y |
|
June 30, 2023 |
|
June 30, 2022 |
|
Y/Y |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
$ |
456,441 |
|
|
$ |
400,868 |
|
|
$ |
840,808 |
|
|
14% |
|
(46%) |
|
$ |
857,309 |
|
|
$ |
1,556,073 |
|
|
(45%) |
| Raw materials and energy
consumption for production |
$ |
(229,077 |
) |
|
$ |
(255,036 |
) |
|
$ |
(369,749 |
) |
|
9% |
|
(32%) |
|
$ |
(484,113 |
) |
|
$ |
(710,304 |
) |
|
(32%) |
| Energy consumption for
production (PPA impact) |
|
(23,193 |
) |
|
|
23,193 |
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
| Operating profit (loss) |
$ |
62,846 |
|
|
$ |
44,454 |
|
|
$ |
265,298 |
|
|
41% |
|
(76%) |
|
$ |
107,300 |
|
|
$ |
476,428 |
|
|
(77%) |
| Operating margin |
|
13.8 |
% |
|
|
11.1 |
% |
|
|
31.6 |
% |
|
|
|
|
|
|
12.5 |
% |
|
|
30.6 |
% |
|
|
| Adjusted net income
attributable to the parent |
$ |
56,737 |
|
|
$ |
7,807 |
|
|
$ |
213,170 |
|
|
627% |
|
(73%) |
|
$ |
64,922 |
|
|
$ |
378,472 |
|
|
(83%) |
| Adjusted diluted EPS |
$ |
0.30 |
|
|
$ |
0.05 |
|
|
$ |
1.14 |
|
|
|
|
|
|
$ |
0.34 |
|
|
$ |
2.02 |
|
|
|
| Adjusted EBITDA |
$ |
105,674 |
|
|
$ |
44,767 |
|
|
$ |
303,159 |
|
|
136% |
|
(65%) |
|
$ |
150,441 |
|
|
$ |
544,277 |
|
|
(72%) |
| Adjusted EBITDA margin |
|
23.2 |
% |
|
|
11.2 |
% |
|
|
36.1 |
% |
|
|
|
|
|
|
17.5 |
% |
|
|
35.0 |
% |
|
|
| Operating cash flow |
$ |
23,572 |
|
|
$ |
134,783 |
|
|
$ |
164,818 |
|
|
(83%) |
|
(86%) |
|
$ |
158,355 |
|
|
$ |
230,726 |
|
|
(31%) |
| Free cash flow1 |
$ |
939 |
|
|
$ |
117,491 |
|
|
$ |
151,109 |
|
|
(99%) |
|
(99%) |
|
$ |
118,430 |
|
|
$ |
207,892 |
|
|
(43%) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Working Capital |
$ |
474,971 |
|
|
$ |
582,344 |
|
|
$ |
687,345 |
|
|
(18%) |
|
(31%) |
|
$ |
474,971 |
|
|
$ |
687,345 |
|
|
(31%) |
| Cash and Restricted Cash |
$ |
363,181 |
|
|
$ |
344,197 |
|
|
$ |
306,511 |
|
|
6% |
|
18% |
|
$ |
363,181 |
|
|
$ |
306,511 |
|
|
18% |
| Adjusted Gross Debt2 |
$ |
400,066 |
|
|
$ |
399,723 |
|
|
$ |
500,472 |
|
|
0% |
|
(20%) |
|
$ |
400,066 |
|
|
$ |
500,472 |
|
|
(20%) |
| Equity |
$ |
823,595 |
|
|
$ |
658,490 |
|
|
$ |
637,710 |
|
|
25% |
|
29% |
|
$ |
823,595 |
|
|
$ |
637,710 |
|
|
29% |
(1) Free cash flow is calculated as operating cash
flow plus investing cash flow(2) Adjusted gross debt
excludes bank borrowings on factoring program and impact of leasing
standard IFRS16 at June 30, 2023 March 31, 2023 & June 30,
2022
Sales
Ferroglobe reported second quarter net sales of
$456 million, an increase of 14% over the prior quarter and a
decrease of 46% over Q2-22. The improvement over our prior quarter
revenue is primarily attributable to higher volumes in our main
products. The $56 million increase in sales over the prior quarter
was primarily driven by silicon metal, which accounted for $35
million of the increase, and manganese-based alloys, which
accounted for $16 million, partially offset by a decrease in
silicon-based alloys, which accounted for $2 million.
Raw materials and energy consumption for
production
Raw materials and energy consumption for
production was $252 million in the second quarter of 2023 versus
$232 million in the prior quarter, an increase of 9%. As a
percentage of sales, raw materials and energy consumption for
production was 55% in the second quarter of 2023 versus 58% in the
prior quarter. Excluding the PPA impact, raw materials and energy
consumption for production was 50% of revenue in the second
quarter, an improvement from 64% in the first quarter.
Net Income (Loss) Attributable to the
Parent
In the second quarter, net profit attributable
to the parent was $32 million, or $0.17 per diluted share, compared
to a net profit attributable to the parent of $21 million, or $0.11
per diluted share in the first quarter.
Adjusted EBITDA
Adjusted EBITDA in the second quarter was $106
million, an increase of 136% over first quarter adjusted EBITDA of
$45 million. Adjusted EBITDA margins were 23% in the second
quarter, up from 11% in the first quarter. The increase in second
quarter adjusted EBITDA was driven by higher sales volumes and
lower costs, which benefited from energy and CO2 compensation.
Total Cash
The total cash balance was $363 million as of
June 30, 2023, up $19 million from $344 million as of March 31,
2023.
During the second quarter, we generated positive
operating cash flow of $24 million, negative cash flow from
investing activities of $23 million, and $19 million positive cash
flow from financing activities.
Total Working Capital
Total working capital was $475 million at June
30, 2023, a decrease from $582 million at March 31, 2023. The $107
million decrease in working capital during the quarter was due to a
decrease in trade and other receivables by $31 million, a decrease
in inventories by $33 million, and an increase in trade and other
payables by $44 million.
Beatriz García-Cos, Ferroglobe’s Chief Financial
Officer, commented, “We continued to manage our working capital
effectively during the quarter, reducing it by $107 million to $475
million with trade receivables, inventories and accounts payable
all contributing. During the second quarter, we improved our net
debt by $18 million to $37 million.
“In July, we further strengthened our balance
sheet by redeeming $150 million of our 9 3/8% Senior Secured Notes,
effectively reducing the outstanding note balance by half and
lowering our annual interest expense by approximately $14 million.
In less than 18 months, we have reduced gross debt by $270 million,
from roughly $520 million to $250 million today, highlighting our
strong cash flow generation.
“We are currently evaluating our next steps in
managing our balance sheet as we contemplate optimal actions to
maximize long-term shareholder value,” concluded Mrs.
Garcia-Cos.
Product Category Highlights
Silicon Metal
| |
Quarter Ended |
|
Quarter Ended |
|
|
|
|
Quarter Ended |
|
|
|
|
Six Months Ended |
|
Six Months Ended |
|
| |
June 30, 2023 |
|
March 31, 2023 |
|
% Q/Q |
|
June 30, 2022 |
|
% Y/Y |
|
June 30, 2023 |
|
June 30, 2022 |
|
% Y/Y |
|
Shipments in metric tons: |
|
50,651 |
|
|
|
36,942 |
|
|
37.1 |
% |
|
|
62,988 |
|
|
(19.6 |
)% |
|
|
87,593 |
|
|
|
119,337 |
|
|
(26.6 |
)% |
|
Average selling price ($/MT): |
|
3,855 |
|
|
|
4,351 |
|
|
(11.4 |
)% |
|
|
5,649 |
|
|
(31.8 |
)% |
|
|
4,064 |
|
|
|
5,603 |
|
|
(27.5 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Silicon Metal Revenue
($,000) |
|
195,260 |
|
|
|
160,735 |
|
|
21.5 |
% |
|
|
355,819 |
|
|
(45.1 |
)% |
|
|
355,995 |
|
|
|
668,669 |
|
|
(46.8 |
)% |
| Silicon Metal
Adj.EBITDA ($,000) |
|
82,403 |
|
|
|
31,120 |
|
|
164.8 |
% |
|
|
175,108 |
|
|
(52.9 |
)% |
|
|
113,523 |
|
|
|
326,769 |
|
|
(65.3 |
)% |
| Silicon Metal
Adj.EBITDA Mgns |
|
42.2 |
% |
|
|
19.4 |
% |
|
|
|
|
|
49.2 |
% |
|
|
|
|
|
31.9 |
% |
|
|
48.9 |
% |
|
|
|
Silicon metal revenue in the second quarter was
$195 million, an increase of 21.5% over the prior quarter. The
average realized price was down 11.4%, driven by lower market index
pricing in the US and Europe. Total shipments increased due to the
restart of our French operations as a result of our energy
agreement. Adjusted EBITDA for silicon metal increased to $82
million during the second quarter, an increase of 164.8% compared
with $31 million for the prior quarter. EBITDA margin in the
quarter increased mainly driven by higher energy compensation and
lower raw materials prices, primarily coal.
Silicon-Based Alloys
| |
Quarter Ended |
|
Quarter Ended |
|
|
|
Quarter Ended |
|
|
|
Six Months Ended |
|
Six Months Ended |
|
| |
June 30, 2023 |
|
March 31, 2023 |
|
% Q/Q |
|
June 30, 2022 |
|
% Y/Y |
|
June 30, 2023 |
|
June 30, 2022 |
|
% Y/Y |
|
Shipments in metric tons: |
|
49,457 |
|
|
|
49,100 |
|
|
0.7 |
% |
|
|
57,658 |
|
|
(14.2 |
)% |
|
|
98,557 |
|
|
|
115,252 |
|
|
(14.5 |
)% |
|
Average selling price ($/MT): |
|
2,697 |
|
|
|
2,756 |
|
|
(2.1 |
)% |
|
|
4,097 |
|
|
(34.2 |
)% |
|
|
2,726 |
|
|
|
3,889 |
|
|
(29.9 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Silicon-based Alloys
Revenue ($,000) |
|
133,386 |
|
|
|
135,320 |
|
|
(1.4 |
)% |
|
|
236,225 |
|
|
(43.5 |
)% |
|
|
268,706 |
|
|
|
448,171 |
|
|
(40.0 |
)% |
| Silicon-based Alloys
Adj.EBITDA ($,000) |
|
31,812 |
|
|
|
21,924 |
|
|
45.1 |
% |
|
|
97,141 |
|
|
(67.3 |
)% |
|
|
53,736 |
|
|
|
175,552 |
|
|
(69.4 |
)% |
| Silicon-based Alloys
Adj.EBITDA Mgns |
|
23.8 |
% |
|
|
16.2 |
% |
|
|
|
|
41.1 |
% |
|
|
|
|
20.0 |
% |
|
|
39.2 |
% |
|
|
Silicon-based alloy revenue in the second
quarter was $133 million, a decrease of 1.4% over the prior
quarter. Shipments remained broadly stable versus the prior
quarter, while average realized selling prices slightly declined by
2.1% versus the previous quarter due to downward market prices
partially offset by product mix improvement. Adjusted EBITDA for
the silicon-based alloys portfolio increased to $32 million in the
second quarter of 2023, an increase of 45.1% compared with $22
million for the prior quarter. EBITDA margin increased in the
quarter as a result of footprint optimization, shifting production
to France with lower energy costs.
Manganese-Based Alloys
| |
Quarter Ended |
|
Quarter Ended |
|
|
|
Quarter Ended |
|
|
|
Six Months Ended |
|
Six Months Ended |
|
| |
June 30, 2023 |
|
March 31, 2023 |
|
% Q/Q |
|
June 30, 2022 |
|
% Y/Y |
|
June 30, 2023 |
|
June 30, 2022 |
|
% Y/Y |
|
Shipments in metric tons: |
|
62,573 |
|
|
|
46,867 |
|
|
33.5 |
% |
|
|
97,007 |
|
|
(35.5 |
)% |
|
|
109,440 |
|
|
|
172,089 |
|
|
(36.4 |
)% |
|
Average selling price ($/MT): |
|
1,248 |
|
|
|
1,316 |
|
|
(5.2 |
)% |
|
|
1,986 |
|
|
(37.2 |
)% |
|
|
1,277 |
|
|
|
1,959 |
|
|
(34.8 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Manganese-based Alloys
Revenue ($,000) |
|
78,091 |
|
|
|
61,677 |
|
|
26.6 |
% |
|
|
192,656 |
|
|
(59.5 |
)% |
|
|
139,768 |
|
|
|
337,189 |
|
|
(58.5 |
)% |
| Manganese-based Alloys
Adj.EBITDA ($,000) |
|
1,065 |
|
|
|
2,043 |
|
|
(47.9 |
)% |
|
|
32,871 |
|
|
(96.8 |
)% |
|
|
3,108 |
|
|
|
53,242 |
|
|
(94.2 |
)% |
| Manganese-based Alloys
Adj.EBITDA Mgns |
|
1.4 |
% |
|
|
3.3 |
% |
|
|
|
|
17.1 |
% |
|
|
|
|
2.2 |
% |
|
|
15.8 |
% |
|
|
Manganese-based alloy revenue in the second
quarter was $78 million, an increase of 26.6% over the prior
quarter. Average realized selling prices decreased by 5.2% linked
to continued index price declines while total shipments increased
33.5% due to the resuming of operations in France and increased
operations in Spain driven by lower energy prices. Adjusted EBITDA
for the manganese-based alloys portfolio decreased to $1 million in
the second quarter, a decrease of 47.9% compared with $2 million
for the prior quarter. EBITDA margin in the quarter decreased as a
result of a decline in the Manganese Spread.
Subsequent Events
Redemption of $150 million of its 9.375%
Senior Secured Notes
On July 21, 2023 the Company announced that its
subsidiary issuers of the 9.375% Senior Secured Notes due 2025 (the
“Notes”) have given a notice of partial redemption of such Notes at
102.34375% of the principal amount plus accrued interest. The
issuers elected to redeem an aggregate principal amount of $150
million of the Notes plus accrued and unpaid interest of
approximately $14 million on July 31, 2023. The Notes were redeemed
with cash on the balance sheet.
Conference Call
Ferroglobe invites all interested persons to
participate on its conference call at 8:30 AM, Eastern Time on
August 15, 2023. Please dial-in at least five minutes prior to the
call to register. The call may also be accessed via an audio
webcast.
To join via
phone: Conference
call participants should pre-register using this
link: https://register.vevent.com/register/BIa07b56b2c46349bb8183571efe30a4a8Once
registered, you will receive the dial-in numbers and a personal
PIN, which are required to access the conference call.
To join via
webcast: A
simultaneous audio webcast, and replay will be accessible
here: https://edge.media-server.com/mmc/p/d39f9hrr
About Ferroglobe
Ferroglobe PLC is a leading global producer of
silicon metal, silicon- and manganese- based specialty alloys and
ferroalloys, serving a customer base across the globe in dynamic
and fast-growing end markets, such as solar, electronics,
automotive, consumer products, construction, and energy. The
Company is based in London. For more information, visit
http://investor.ferroglobe.com.
Forward-Looking Statements
This release contains “forward-looking
statements” within the meaning of U.S. securities laws.
Forward-looking statements are not historical facts but are based
on certain assumptions of management and describe the Company’s
future plans, strategies and expectations. Forward-looking
statements often use forward-looking terminology, including words
such as “anticipate”, “believe”, “could”, “estimate”, “expect”,
“forecast”, “guidance”, “intends”, “likely”, “may”, “plan”,
“potential”, “predicts”, “seek”, “target”, “will” and words of
similar meaning or the negative thereof.
Forward-looking statements contained in this
press release are based on information currently available to the
Company and assumptions that management believe to be reasonable,
but are inherently uncertain. As a result, Ferroglobe’s actual
results, performance or achievements may differ materially from
those expressed or implied by these forward-looking statements,
which are not guarantees of future performance and involve known
and unknown risks, uncertainties and other factors that are, in
some cases, beyond the Company’s control.
Forward-looking financial information and other
metrics presented herein represent the Company’s goals and are not
intended as guidance or projections for the periods referenced
herein or any future periods.
All information in this press release is as of
the date of its release. Ferroglobe does not undertake any
obligation to update publicly any of the forward-looking statements
contained herein to reflect new information, events or
circumstances arising after the date of this press release. You
should not place undue reliance on any forward-looking statements,
which are made only as of the date of this press release.
Non-IFRS Measures
This document may contain summarized,
non-audited or non-GAAP financial information. The information
contained herein should therefore be considered as a whole and in
conjunction with all the public information regarding the Company
available, including any other documents released by the Company
that may contain more detailed information. Adjusted EBITDA,
adjusted EBITDA as a percentage of sales, working capital as a
percentage of sales, adjusted EBITDA margin, adjusted net profit,
adjusted profit per share, working capital, adjusted gross debt and
net debt, are non-IFRS financial metrics that management uses in
its decision making. Ferroglobe has included these financial
metrics to provide supplemental measures of its performance. The
Company believes these metrics are important and useful to
investors because they eliminate items that have less bearing on
the Company’s current and future operating performance and
highlight trends in its core business that may not otherwise be
apparent when relying solely on IFRS financial measures.
INVESTOR CONTACT:
Alex Rotonen, CFAVice President, Investor Relations Email:
investor.relations@ferroglobe.com
MEDIA CONTACT:
Cristina Feliu RoigExecutive Director – Communications &
Public AffairsEmail: corporate.comms@ferroglobe.com
| |
| |
|
Ferroglobe PLC and Subsidiaries |
|
Unaudited Condensed Consolidated Income
Statement |
|
(in thousands of U.S. dollars, except per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Six Months Ended |
|
Six Months Ended |
| |
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
|
Sales |
$ |
456,441 |
|
|
$ |
400,868 |
|
|
$ |
840,808 |
|
|
$ |
857,309 |
|
|
$ |
1,556,073 |
|
| Raw materials and energy
consumption for production |
|
(229,077 |
) |
|
|
(255,036 |
) |
|
|
(369,749 |
) |
|
|
(484,113 |
) |
|
|
(710,304 |
) |
| Energy consumption for
production (PPA impact) |
|
(23,193 |
) |
|
|
23,193 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Other operating income |
|
27,689 |
|
|
|
14,814 |
|
|
|
26,223 |
|
|
|
42,503 |
|
|
|
49,231 |
|
| Staff costs |
|
(74,972 |
) |
|
|
(67,543 |
) |
|
|
(80,704 |
) |
|
|
(142,515 |
) |
|
|
(162,690 |
) |
| Other operating expense |
|
(77,202 |
) |
|
|
(54,145 |
) |
|
|
(130,992 |
) |
|
|
(131,347 |
) |
|
|
(214,168 |
) |
| Depreciation and amortization
charges, operating allowances and write-downs |
|
(16,452 |
) |
|
|
(17,990 |
) |
|
|
(20,185 |
) |
|
|
(34,442 |
) |
|
|
(41,294 |
) |
| Impairment (loss) gain |
|
(887 |
) |
|
|
246 |
|
|
|
— |
|
|
|
(641 |
) |
|
|
— |
|
| Other gain (loss) |
|
499 |
|
|
|
47 |
|
|
|
(103 |
) |
|
|
546 |
|
|
|
(420 |
) |
| Operating
profit |
|
62,846 |
|
|
|
44,454 |
|
|
|
265,298 |
|
|
|
107,300 |
|
|
|
476,428 |
|
| Net finance (income)
expense |
|
(895 |
) |
|
|
(10,980 |
) |
|
|
(12,829 |
) |
|
|
(11,875 |
) |
|
|
(25,284 |
) |
| Exchange differences |
|
(5,367 |
) |
|
|
1,455 |
|
|
|
(7,882 |
) |
|
|
(3,912 |
) |
|
|
(12,275 |
) |
| Profit before
tax |
|
56,584 |
|
|
|
34,929 |
|
|
|
244,587 |
|
|
|
91,513 |
|
|
|
438,869 |
|
| Income tax (loss) |
|
(20,520 |
) |
|
|
(9,461 |
) |
|
|
(59,529 |
) |
|
|
(29,981 |
) |
|
|
(103,024 |
) |
| Profit for the
period |
|
36,064 |
|
|
|
25,468 |
|
|
|
185,058 |
|
|
|
61,532 |
|
|
|
335,845 |
|
| Profit (loss) attributable to
non-controlling interest |
|
(4,156 |
) |
|
|
(4,477 |
) |
|
|
265 |
|
|
|
(8,633 |
) |
|
|
641 |
|
| Profit attributable to the
parent |
$ |
31,908 |
|
|
$ |
20,991 |
|
|
$ |
185,323 |
|
|
$ |
52,899 |
|
|
$ |
336,486 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA |
$ |
79,298 |
|
|
$ |
62,444 |
|
|
$ |
285,483 |
|
|
$ |
141,742 |
|
|
$ |
517,722 |
|
| Adjusted EBITDA |
$ |
105,674 |
|
|
$ |
44,767 |
|
|
$ |
303,159 |
|
|
$ |
150,441 |
|
|
$ |
544,277 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average
shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
187,872 |
|
|
|
187,873 |
|
|
|
187,441 |
|
|
|
187,873 |
|
|
|
187,424 |
|
|
Diluted |
|
190,174 |
|
|
|
189,629 |
|
|
|
188,538 |
|
|
|
189,914 |
|
|
|
188,567 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profit (loss) per
ordinary share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.17 |
|
|
$ |
0.11 |
|
|
$ |
0.99 |
|
|
$ |
0.28 |
|
|
$ |
1.80 |
|
|
Diluted |
$ |
0.17 |
|
|
$ |
0.11 |
|
|
$ |
0.98 |
|
|
$ |
0.28 |
|
|
$ |
1.78 |
|
| |
|
Ferroglobe PLC and Subsidiaries |
|
Unaudited Condensed Consolidated Statement of Financial
Position |
|
(in thousands of U.S. dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
June 30, |
|
March 31, |
|
December 31, |
| |
2023 |
|
2023 |
|
2022 |
|
ASSETS |
| Non-current
assets |
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
$ |
29,702 |
|
|
$ |
29,702 |
|
|
$ |
29,702 |
|
|
Other intangible assets |
|
125,403 |
|
|
|
223,447 |
|
|
|
111,797 |
|
|
Property, plant and equipment |
|
500,546 |
|
|
|
497,557 |
|
|
|
486,247 |
|
|
Other non-current financial assets |
|
14,175 |
|
|
|
14,702 |
|
|
|
14,186 |
|
|
Deferred tax assets |
|
8,683 |
|
|
|
7,123 |
|
|
|
7,136 |
|
|
Non-current receivables from related parties |
|
1,630 |
|
|
|
2,915 |
|
|
|
1,600 |
|
|
Other non-current assets |
|
19,633 |
|
|
|
19,297 |
|
|
|
18,218 |
|
|
Non-current restricted cash and cash equivalents |
|
2,173 |
|
|
|
2,175 |
|
|
|
2,133 |
|
| Total non-current
assets |
|
701,945 |
|
|
|
796,918 |
|
|
|
671,019 |
|
| Current
assets |
|
|
|
|
|
|
|
|
|
|
|
|
Inventories |
|
384,526 |
|
|
|
417,042 |
|
|
|
500,080 |
|
|
Trade and other receivables |
|
281,821 |
|
|
|
312,452 |
|
|
|
425,474 |
|
|
Current receivables from related parties |
|
2,726 |
|
|
|
2,728 |
|
|
|
2,675 |
|
|
Current income tax assets |
|
16,290 |
|
|
|
7,652 |
|
|
|
6,104 |
|
|
Other current financial assets |
|
2 |
|
|
|
2 |
|
|
|
3 |
|
|
Other current assets |
|
104,237 |
|
|
|
26,914 |
|
|
|
30,608 |
|
|
Assets and disposal groups classified as held for sale |
|
1,087 |
|
|
|
1,088 |
|
|
|
1,067 |
|
|
Current restricted cash and cash equivalents |
|
2,406 |
|
|
|
2,411 |
|
|
|
2,875 |
|
|
Cash and cash equivalents |
|
358,602 |
|
|
|
339,611 |
|
|
|
317,935 |
|
| Total current
assets |
|
1,151,697 |
|
|
|
1,109,900 |
|
|
|
1,286,821 |
|
| Total
assets |
$ |
1,853,642 |
|
|
$ |
1,906,818 |
|
|
$ |
1,957,840 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY AND LIABILITIES |
| Equity |
$ |
823,595 |
|
|
$ |
658,490 |
|
|
$ |
756,813 |
|
| Non-current
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income |
|
77,514 |
|
|
|
128,125 |
|
|
|
3,842 |
|
|
Provisions |
|
52,664 |
|
|
|
50,937 |
|
|
|
47,670 |
|
|
Bank borrowings |
|
15,354 |
|
|
|
15,590 |
|
|
|
15,774 |
|
|
Lease liabilities |
|
11,634 |
|
|
|
11,744 |
|
|
|
12,942 |
|
|
Debt instruments |
|
302,572 |
|
|
|
304,621 |
|
|
|
330,655 |
|
|
Other financial liabilities |
|
66,558 |
|
|
|
39,276 |
|
|
|
38,279 |
|
|
Other Obligations |
|
31,763 |
|
|
|
36,310 |
|
|
|
37,502 |
|
|
Other non-current liabilities |
|
137 |
|
|
|
22 |
|
|
|
12 |
|
|
Deferred tax liabilities |
|
34,265 |
|
|
|
35,272 |
|
|
|
35,854 |
|
| Total non-current
liabilities |
|
592,461 |
|
|
|
621,897 |
|
|
|
522,530 |
|
| Current
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Provisions |
|
55,935 |
|
|
|
146,501 |
|
|
|
145,507 |
|
|
Bank borrowings |
|
64,793 |
|
|
|
31,462 |
|
|
|
62,059 |
|
|
Lease liabilities |
|
7,551 |
|
|
|
7,492 |
|
|
|
8,929 |
|
|
Debt instruments |
|
11,668 |
|
|
|
4,688 |
|
|
|
12,787 |
|
|
Other financial liabilities |
|
12,500 |
|
|
|
43,950 |
|
|
|
60,382 |
|
|
Financial Instruments |
|
— |
|
|
|
79,331 |
|
|
|
— |
|
|
Payables to related parties |
|
2,521 |
|
|
|
2,377 |
|
|
|
1,790 |
|
|
Trade and other payables |
|
191,376 |
|
|
|
147,150 |
|
|
|
219,666 |
|
|
Current income tax liabilities |
|
3,494 |
|
|
|
48,326 |
|
|
|
53,234 |
|
|
Other Obligations |
|
13,589 |
|
|
|
18,790 |
|
|
|
9,580 |
|
|
Other current liabilities |
|
74,159 |
|
|
|
96,364 |
|
|
|
104,563 |
|
| Total current
liabilities |
|
437,586 |
|
|
|
626,431 |
|
|
|
678,497 |
|
| Total equity and
liabilities |
$ |
1,853,642 |
|
|
$ |
1,906,818 |
|
|
$ |
1,957,840 |
|
| |
|
Ferroglobe PLC and Subsidiaries |
|
Unaudited Condensed Consolidated Statement of Cash
Flows |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Six Months Ended |
|
Six Months Ended |
| |
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
| Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period |
$ |
36,064 |
|
|
$ |
25,468 |
|
|
$ |
185,058 |
|
|
$ |
61,532 |
|
|
$ |
335,845 |
|
| Adjustments to
reconcile net (loss) profit to net cash used
by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit) expense |
|
20,520 |
|
|
|
9,461 |
|
|
|
59,529 |
|
|
|
29,981 |
|
|
|
103,024 |
|
|
Depreciation and amortization charges, operating allowances and
write-downs |
|
16,452 |
|
|
|
17,990 |
|
|
|
20,185 |
|
|
|
34,442 |
|
|
|
41,294 |
|
|
Net finance expense |
|
895 |
|
|
|
10,980 |
|
|
|
12,829 |
|
|
|
11,875 |
|
|
|
25,284 |
|
|
Exchange differences |
|
5,367 |
|
|
|
(1,455 |
) |
|
|
7,882 |
|
|
|
3,912 |
|
|
|
12,275 |
|
|
Impairment losses |
|
887 |
|
|
|
(246 |
) |
|
|
— |
|
|
|
641 |
|
|
|
— |
|
|
Net loss (gain) due to changes in the value of asset |
|
(344 |
) |
|
|
(25 |
) |
|
|
(10 |
) |
|
|
(369 |
) |
|
|
(16 |
) |
|
Gain on disposal of non-current assets |
|
(161 |
) |
|
|
(22 |
) |
|
|
— |
|
|
|
(183 |
) |
|
|
302 |
|
|
Share-based compensation |
|
2,041 |
|
|
|
1,905 |
|
|
|
970 |
|
|
|
3,946 |
|
|
|
2,777 |
|
|
Other adjustments |
|
6 |
|
|
|
— |
|
|
|
112 |
|
|
|
6 |
|
|
|
133 |
|
| Changes in operating
assets and liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Increase) decrease in inventories |
|
30,132 |
|
|
|
86,275 |
|
|
|
(59,568 |
) |
|
|
116,407 |
|
|
|
(133,179 |
) |
|
(Increase) decrease in trade receivables |
|
29,326 |
|
|
|
118,714 |
|
|
|
(25,963 |
) |
|
|
148,040 |
|
|
|
(147,730 |
) |
|
Increase (decrease) in trade payables |
|
19,169 |
|
|
|
(73,864 |
) |
|
|
(10,959 |
) |
|
|
(54,695 |
) |
|
|
29,114 |
|
|
Other |
|
(61,617 |
) |
|
|
(44,100 |
) |
|
|
5,654 |
|
|
|
(105,717 |
) |
|
|
(6,809 |
) |
| Income taxes paid |
|
(75,165 |
) |
|
|
(16,298 |
) |
|
|
(30,901 |
) |
|
|
(91,463 |
) |
|
|
(31,588 |
) |
| Net cash provided
(used) by operating activities |
|
23,572 |
|
|
|
134,783 |
|
|
|
164,818 |
|
|
|
158,355 |
|
|
|
230,726 |
|
| Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest and finance income
received |
|
969 |
|
|
|
668 |
|
|
|
140 |
|
|
|
1,637 |
|
|
|
208 |
|
| Payments due to
investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other intangible assets |
|
(940 |
) |
|
|
— |
|
|
|
— |
|
|
|
(940 |
) |
|
|
— |
|
|
Property, plant and equipment |
|
(22,662 |
) |
|
|
(17,960 |
) |
|
|
(13,855 |
) |
|
|
(40,622 |
) |
|
|
(23,048 |
) |
|
Other |
|
— |
|
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
6 |
|
| Net cash (used)
provided by investing activities |
|
(22,633 |
) |
|
|
(17,292 |
) |
|
|
(13,709 |
) |
|
|
(39,925 |
) |
|
|
(22,834 |
) |
| Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Payment for debt and equity
issuance costs |
|
— |
|
|
|
— |
|
|
|
(100 |
) |
|
|
— |
|
|
|
(100 |
) |
| Proceeds from debt
issuance |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,943 |
) |
| Repayment of debt
instruments |
|
(1,742 |
) |
|
|
(26,283 |
) |
|
|
— |
|
|
|
(28,025 |
) |
|
|
— |
|
| Increase/(decrease) in
bank borrowings: |
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
Borrowings |
|
152,210 |
|
|
|
109,762 |
|
|
|
301,360 |
|
|
|
261,972 |
|
|
|
545,524 |
|
|
Payments |
|
(126,840 |
) |
|
|
(141,900 |
) |
|
|
(292,253 |
) |
|
|
(268,740 |
) |
|
|
(529,880 |
) |
| Amounts paid due to
leases |
|
(2,851 |
) |
|
|
(2,247 |
) |
|
|
(2,277 |
) |
|
|
(5,098 |
) |
|
|
(4,795 |
) |
| Proceeds from other financing
liabilities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Other amounts received/(paid)
due to financing activities |
|
— |
|
|
|
(17,377 |
) |
|
|
(19,119 |
) |
|
|
(17,377 |
) |
|
|
19,179 |
|
| Interest paid |
|
(1,721 |
) |
|
|
(18,192 |
) |
|
|
(2,376 |
) |
|
|
(19,913 |
) |
|
|
(37,175 |
) |
| Net cash (used)
provided by financing activities |
|
19,056 |
|
|
|
(96,237 |
) |
|
|
(14,765 |
) |
|
|
(77,181 |
) |
|
|
(12,190 |
) |
| Total net cash flows
for the period |
|
19,995 |
|
|
|
21,254 |
|
|
|
136,344 |
|
|
|
41,249 |
|
|
|
195,702 |
|
|
Beginning balance of cash and cash equivalents |
|
344,197 |
|
|
|
322,943 |
|
|
|
176,022 |
|
|
|
322,943 |
|
|
|
116,663 |
|
|
Exchange differences on cash and cash equivalents in foreign
currencies |
|
(1,011 |
) |
|
|
— |
|
|
|
(5,855 |
) |
|
|
(1,011 |
) |
|
|
(5,854 |
) |
| Ending balance of cash
and cash equivalents |
$ |
363,181 |
|
|
$ |
344,197 |
|
|
$ |
306,511 |
|
|
$ |
363,181 |
|
|
$ |
306,511 |
|
| Cash from continuing
operations |
|
358,602 |
|
|
|
339,611 |
|
|
|
304,434 |
|
|
|
358,602 |
|
|
|
304,434 |
|
| Current/Non-current restricted
cash and cash equivalents |
|
4,579 |
|
|
|
4,586 |
|
|
|
2,077 |
|
|
|
4,579 |
|
|
|
2,077 |
|
| Cash and restricted
cash in the statement of financial position |
$ |
363,181 |
|
|
$ |
344,197 |
|
|
$ |
306,511 |
|
|
$ |
363,181 |
|
|
$ |
306,511 |
|
Adjusted EBITDA ($,000):
| |
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Six Months Ended |
|
Six Months Ended |
| |
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
|
Profit attributable to the parent |
$ |
31,908 |
|
|
$ |
20,991 |
|
|
$ |
185,323 |
|
|
$ |
52,899 |
|
|
$ |
336,486 |
|
| Profit (loss) attributable to
non-controlling interest |
|
4,156 |
|
|
|
4,477 |
|
|
|
(265 |
) |
|
|
8,633 |
|
|
|
(641 |
) |
| Income tax expense |
|
20,520 |
|
|
|
9,461 |
|
|
|
59,529 |
|
|
|
29,981 |
|
|
|
103,024 |
|
| Net finance expense |
|
895 |
|
|
|
10,980 |
|
|
|
12,829 |
|
|
|
11,875 |
|
|
|
25,284 |
|
| Exchange differences |
|
5,367 |
|
|
|
(1,455 |
) |
|
|
7,882 |
|
|
|
3,912 |
|
|
|
12,275 |
|
| Depreciation and amortization
charges, operating allowances and write-downs |
|
16,452 |
|
|
|
17,990 |
|
|
|
20,185 |
|
|
|
34,442 |
|
|
|
41,294 |
|
| EBITDA |
|
79,298 |
|
|
|
62,444 |
|
|
|
285,483 |
|
|
|
141,742 |
|
|
|
517,722 |
|
| Impairment |
|
887 |
|
|
|
(246 |
) |
|
|
— |
|
|
|
641 |
|
|
|
— |
|
| Restructuring and termination
costs |
|
— |
|
|
|
— |
|
|
|
3,406 |
|
|
|
— |
|
|
|
9,315 |
|
| New strategy
implementation |
|
(77 |
) |
|
|
2,049 |
|
|
|
14,270 |
|
|
|
1,972 |
|
|
|
17,240 |
|
| Subactivity |
|
2,373 |
|
|
|
3,713 |
|
|
|
— |
|
|
|
6,086 |
|
|
|
— |
|
| PPA Energy |
|
23,193 |
|
|
|
(23,193 |
) |
|
|
— |
|
|
|
— |
|
|
|
|
| Adjusted
EBITDA |
$ |
105,674 |
|
|
$ |
44,767 |
|
|
$ |
303,159 |
|
|
$ |
150,441 |
|
|
$ |
544,277 |
|
Adjusted profit attributable to
Ferroglobe ($,000):
| |
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Six Months Ended |
|
Six Months Ended |
| |
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
|
Profit attributable to the parent |
$ |
31,908 |
|
|
$ |
20,991 |
|
|
$ |
185,323 |
|
|
$ |
52,899 |
|
|
$ |
336,486 |
|
|
Tax rate adjustment |
|
5,469 |
|
|
|
(599 |
) |
|
|
13,498 |
|
|
|
5,639 |
|
|
|
20,429 |
|
|
Impairment |
|
651 |
|
|
|
(175 |
) |
|
|
— |
|
|
|
470 |
|
|
|
— |
|
|
Restructuring and termination costs |
|
— |
|
|
|
— |
|
|
|
2,765 |
|
|
|
— |
|
|
|
7,562 |
|
|
New strategy implementation |
|
(57 |
) |
|
|
1,459 |
|
|
|
11,584 |
|
|
|
1,447 |
|
|
|
13,995 |
|
|
Subactivity |
|
1,742 |
|
|
|
2,644 |
|
|
|
— |
|
|
|
4,467 |
|
|
|
— |
|
|
PPA Energy |
|
17,024 |
|
|
|
(16,513 |
) |
|
|
— |
|
|
|
— |
|
|
|
|
|
| Adjusted profit
attributable to the parent |
$ |
56,737 |
|
|
$ |
7,807 |
|
|
$ |
213,170 |
|
|
$ |
64,922 |
|
|
$ |
378,472 |
|
Adjusted diluted profit per
share:
| |
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Six Months Ended |
|
Six Months Ended |
| |
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
|
Diluted profit per ordinary share |
$ |
0.17 |
|
|
$ |
0.11 |
|
|
$ |
0.98 |
|
|
$ |
0.28 |
|
|
$ |
1.78 |
|
|
Tax rate adjustment |
|
0.03 |
|
|
|
(0.00 |
) |
|
|
0.08 |
|
|
|
0.03 |
|
|
|
0.12 |
|
|
Impairment |
|
0.00 |
|
|
|
(0.00 |
) |
|
|
— |
|
|
|
0.00 |
|
|
|
— |
|
|
Restructuring and termination costs |
|
— |
|
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
|
|
0.04 |
|
|
New strategy implementation |
|
(0.00 |
) |
|
|
0.01 |
|
|
|
0.06 |
|
|
|
0.01 |
|
|
|
0.08 |
|
|
Subactivity |
|
0.01 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
|
PPA Energy |
|
0.09 |
|
|
|
(0.09 |
) |
|
|
— |
|
|
|
— |
|
|
|
|
|
| Adjusted diluted
profit per ordinary share |
$ |
0.30 |
|
|
$ |
0.05 |
|
|
$ |
1.14 |
|
|
$ |
0.34 |
|
|
$ |
2.02 |
|
Ferroglobe (NASDAQ:GSM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ferroglobe (NASDAQ:GSM)
Historical Stock Chart
From Apr 2023 to Apr 2024
